PROBLEM DESCRIPTION:

This research study is trying to see if there is a relationship in the NBA

between Player Efficiency Rating (PER), and annual salary for the 2015-16
season. PER is a per-minute and pace- adjusted stat that shows how
productive a player is on the court. It takes into account all the possible stats
for a player, that allows teams to compare players overall through their
strengths and weaknesses, all in a single calculable number. This study is
being done because we want to see how much of a correlation there is
between the two variables, and if harder work and production on the court
leads to a higher pay day for a player in the NBA. The average PER every
year is always around 15.00, and ~$5,000,000 so we will also see if the
average NBA salary can show a similarly accurate value for the whole
league. We will be performing a simple random sample of 100 NBA players,
using www. RANDOM.org to make this data applicable for the whole 450
player league. This is a plausible study because we have a random sample
that is large enough to represent a population (the entire NBA league). Also
we have a valid relationship between two calculable variables that have
potential to have a correlation.

PROCEDURE:
Technical Conditions:

Dependent variable y linear relationship with independent variable x.

(Residual no form)

Variability in residual plots ().

Ho: B=0 (There is no association between PER and salary for NBA players).

Ha: B>0 (There is a positive linear association 0<B<1 between PER and
salary for NBA players).

Sample size n = 100 NBA Players

What we are planning to do is find every NBA player in our samples PER and
salary ($/1,000,000).

We will find this by

using this formula for
PER:
So, for example, we take Stephen Curry. We look at all of his stats given by
http://stats.nba.com/players/. What we do is see his number of minutes
played (2700), 3 point field goals made (402), number of total field goals
made (805), number of free throws made (363), Assists (527), rebound%=
8.6 (Offensive=68, defensive=362, total=430), and many other calculable
offensive and defensive statistics. When this is all calculated, Currys PER
comes out to 31.56, number 1 in the league.

We use http://espn.go.com/nba/salaries for 2015-16 salaries.

After we compile all numbers in a spreadsheet, we transfer them into two

lists in a Ti-84 calculator. We calculate a regression equation, the correlation
coefficient, and coefficient of determination using STAT--- CALC--- 8: LinReg
(a+bx) (L1, L2).

We also will find critical values such as the t*, p-value, and a 95% Confidence
Interval to test our null and actual hypothesis, by using STAT --- Tests ---
LineRegTTest

RAW DATA:
We put this in the Ti-84 in two lists, and plotted the graph as a scatterplot.

2nd STATPLOT --- 1: --- Type 1 ---

XLIST: L1 --- YLIST: L2 ---GRAPH

Then we found the slope of this scatterplot through the LinReg (a+bx) shown
above.

The equation for this relationship is:

NBA Salary = -2,983,248 + .633349(PER).

Correlation Coefficient: .5451511

Coefficient of Determination: .2971896

We know that to find t* we use

r ((n-2)/ (1-r^2)

So t* = .545151 ((100-2)/ (1-.297189)) =

6.43740488

Also, we can find standard error of the

slope by using: SE(b) = Slope/t*

SE(b) = .63334975/6.43740488 = .
09838588

P-value is shown to be .
CI 95% : b +- t*(SE(b))

T* for CI = InvT (((1-.95)/2)+.95), (98 df) = 1.984467

CI 95% : .633349751 +- 1.984467 (.09838588) = (0.438106, 0.828593)

PER average = 15.5179

Salary average = $6,845,000

STATISTICAL ANALYSIS:
All the data is calculated above. We found a linear relationship between PER
and Salary in the NBA.

The scatterplot shown above for the plot shows a moderately strong,
positive, linear relationship between PER and salary. The correlation
coefficient r is found to be .545151, which is a moderately strong indicator in
the positive direction for PER vs. salary.

The coefficient of determination is .2971896, which is an indicator that

29.176% of an NBA Players salary can be explained by what their Player
Efficiency Rating is. The other 70.824% can be explained by other variables.

Based on the equation, an NBA players salary will increase by $633,349.75

for every 1 point increase in Player Efficiency Rating.

The P-value is calculated to be .0000000022542705. Based on an alpha

significance level of .05, the p-value is much smaller, so we can clearly reject
the null hypothesis that says there is no relationship between PER and
salary, and conclude that there is strong statistical evidence to say there is a
positive linear association between
Player Efficiency Rating and NBA We also created a residual plot by
Salary in 2015-16. using the scatterplot and having the
YLIST as RESIDUAL. As it is clearly
shown, there is no definite form or
shape to these 100 points, so we can
safely assume that the relationship is
supposed to be linear, and not any
other type, such as parabolic,
exponential, etc.
For our 95% Confidence Interval, we found that the values are (0.438106,
0.828593). So since we have our hypothesis backed up, we can be 95%
confident the slope of the population regression line between PER and NBA
salary falls in between $438,106 & $828,593. So were 95% confident that
the average increase in Salary of the average NBA player is between
$438,106 & $828,593.

Also based on the given NBA averages of PER= 15.00 and salary=
$5,000,000, our numbers are fairly close, as our averages are 15.5179 and
$6,845,000. Since this is a random sample of NBA players, not taking into
account 350 players, there will be clear variability in raw numbers.

CONCLUSION:
Based on the complete data and statistical analysis shown above, we stated
that we reject the null hypothesis and concluded that there is a positive,
linear association between Player Efficiency Rating and NBA Salary for NBA
players. We found that for every 1 point increase in PER, the salary of a
player would increase by $633,497 for the 2015-2016 season. There was no
pattern to the residual plot, so we also saw that there was evidence that the
pattern would be linear, and not any other form for the relationship. So we
were correct in our earlier assumption that harder work and effort, combined
with higher number of strengths and results would result in a higher pay day
for NBA players.